Correlation Analysis And Linkage Design Tax Of The Expense Deduction Standard And Consumer Price Index Of Personal Income In China

As income levels caused by the rapid development of the economy’s increase, but alsomakes the income gap between residents increasing. And the personal income tax for themediation of the income gap of residents should play an important role in finance, so peoplepay more and more attention to the reform of the individual income tax, especially to adjustpersonal income tax expense deduction standard, the research have its practical significancefor our country. Personal income tax expense deduction standard movements in relation toeach citizen’s vital interest, relationship between tax expense deduction standard and theconsumer price index provides a theoretical guidance for Chinese tax expense deductionstandard future adjustment, the residents’ consumption level and consumption structure hasbeen optimized, truly concerned about the livelihood of the people, to provide the basis forour country to stimulate consumption, which is the theoretical significance of my research.This paper carries on the corresponding function defined by the specific contents andevolution of cost standard deduction of individual income tax,the analysis of individualincome tax of our country financial and income function.According to China’s personalincome tax expense deduction standard in the presence of income and expenditure,withoutconsidering the factors between inflation and the family burden,summed up the impact of fourfactors related to personal income tax expense deduction standard:CPI,residents’ incomelevel,consumption structure and the family burden abilily.And the personal income taxexpense deduction standard and the influence factors were analyzed,the analysis between thestandard with the consumption level、structure of residents and family burden linkagededucted from personal income tax expence,scientific and reasonable to draw the CPI indexand the personal income tax expence deduction standard linkage.Then the personal incometax expense deduction standard and CPI index linkage design,scientific fixed years ofpersonal income tax expense deduction standard,and scientific prediction of neraly five yearsof expense deduction standard level,carry out corresponding adjustment to tax level,designed to achieve the perfect individual income tax expense deduction standard system,finally tonarrow the gap of income distribution to realize the social fair and reasonable target.